PROS Holdings, Inc. (NYSE:PRO) Q3 2023 Earnings Call Transcript

Rob Oliver: Great. Okay. Excellent to hear. And then just looks like a real strong quarter for you guys in Europe and I just wanted to parse on that a little bit and understand was it more on the B2B side, more on the air travel side and then be curious for any color around those deals, partner led or sort of the new more modular sales model, what’s driving that that strength? Thank you.

Andres Reiner: Yes. No, great question. I would tell you, look, in general, we’re seeing — we’re focused on this land realized expand strategy. So I would say, in general, we’re trying to land these smaller deals and drive acceleration. As we know it is a complex market and we knew coming into this year, there was more important than ever that we land in a fast time to value, be able to measure uplift and drive quick expansion because companies are very focused on where they invest. And I think we’ve executed on that strategy well both in travel and B2B. With respect to EMEA, we saw good demand on the travel front with expansions and we talked about some of those and also on the B2B front. So across both sides, but I would say both teams are very, very focused on how we land an account and what is the best next offer that we can offer for existing customers to drive those rapid expansions.

Operator: Our next question comes from the line of Jason Celino with KeyBanc Capital Markets Inc. Please proceed with your question.

Jason Celino: Great. Thanks for taking my question. One on sales capacity. Next year is just around the corner at this point. Wanted to get an update, how you’re thinking about sales capacity heading into next year. Do you feel comfortable with your coverage? Any thoughts there?

Andres Reiner: Yes. Great question, Jason. I would tell you we’re in a good place from a sales capacity. We’ve continued to add the reps that we need to onboard and get them productive for next year. So I feel like we’re in a good place. We’ll continue to execute through this quarter. We’ll continue to have reps in preparation, but I feel we’re in a really good place with the team. We’re also continuing to focus on driving higher rep productivity. This is an area that we started and I would tell you we’ve made improvement to our CAC ratios and we feel we can get to best-in-class. And we’re going to continue also to focus on driving higher rev productivity as we look into next year. But we feel from a capacity, we’re in a good place.

Jason Celino: Perfect. And then, just a quick one for Stefan, on the EBITDA beat nice leverage there. Looks like you’re raising the full-year by only a little bit. Any expenses or investments that we should be aware of for Q4?

Stefan Schulz: No, Jason. We did in our forecast assuming we deliver based on anticipation and how we’re seeing the plan come in; there’ll be some variable compensation components that come into play in the fourth quarter. That’s the only reason you see that number sequentially come down slightly from Q3 to Q4 is that potential variable incentive component. That’s it.

Jason Celino: Great. Excellent. Good stuff. Thank you.

Andres Reiner: Thank you.

Stefan Schulz: Thank you.

Operator: Our next question comes from the line of Scott Berg with Needham. Please proceed with your question.

Scott Berg: Hi, Andres, and Stefan, congrats on the good quarter and thanks for taking my questions. I guess a couple things, surprised this one lasted to me. There’s a rumor at the end of the quarter that you’ve hired another investment bank potentially, I guess, evaluate maybe some sort of incoming inquiries into the company. Not that I expect you to comment on any acquisition activity on the company here publicly, but I guess any thoughts on what the criteria or scenario would be to maybe potentially actually go through with the sale of the company? Because I think you guys are at a fantastic point right now with AI, with rebound and travel. I would think the future looks really strong and you probably have some interest in maintaining this as a public entity for a while. Thank you.